Beef Buzz News
Simple Yet Important Distinctions to Understand in Cattle Price Projections
Wed, 05 Oct 2016 12:20:27 CDT
Kansas State University recently hosted its Beef Cattle Stocker Field Day and in attendance was Extension Livestock Market Economist Dr. Glynn Tonsor. While there, he spoke with producers about several topics regarding calculating the costs related to grazing cattle and their potential value of gain. Dr. Tonsor spoke with Farm Director Ron Hays as well, to explain his method in determining the price a producer can expect to get, grazing stockers through to spring.
"You could take the current cash market and apply a value of gain," Tonsor said, using the September 28th Dodge City report as an example, comparing 5WT calves to 7WT calves, "and infer what the markets are paying them for the additional pounds. And if you do this, you'll infer over a dollar per pound, on what the market says they want."
Dr. Tonsor says this is a signal that markets are looking for heavier animals. However, he offers a word of caution with the same breath.
"But what I want to give caution on, is using that as a projection of value of gain," Tonsor said.
He explained you would not want to buy a 5WT calf, put an additional 200 lbs. on it and expect any certain price for it based off current market prices. He warns that it takes several months to do this, and a lot can happen between now and then.
"You have to look forward, there's seasonal patterns, there's lots of things you have to look forward to, not just today's heavy weight price," Tonsor said, digressing that despite all the volatility talk, "The punchline is, it more accurate to use the forward looking futures contracts historic basis than use the current market."
In effort to help producers better anticipate their costs and profits, Dr. Tonsor contributed to the development of www.beefbasis.com, a website featuring several helpful calculators.
Listen to Dr. Glynn Tonsor explain the intricacies of projecting cattle prices using the current cash market with Farm Director Ron Hays on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Listen to Dr. Glynn Tonsor explain the intricacies of projecting cattle prices using the current markets
right-click to download mp3
Listen to Dr. Glynn Tonsor explain the intricacies of projecting cattle prices using the current markets
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Beef News
NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains Wed, 23 Nov 2022 14:51:02 CST
November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots Tue, 22 Nov 2022 05:07:02 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:36:33 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:27:40 CST
Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill Mon, 07 Nov 2022 12:13:57 CST
USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward Thu, 03 Nov 2022 09:35:46 CDT
Economic Factors Create Hesitancy in Beef Plant Expansion Plans Wed, 02 Nov 2022 11:03:34 CDT
NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline Tue, 01 Nov 2022 11:41:02 CDT
Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar Mon, 31 Oct 2022 09:15:56 CDT
Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship Fri, 28 Oct 2022 09:30:13 CDT
Implement Soil Health Practices Now to Increase Forage Production when Rains Come Thu, 27 Oct 2022 15:14:07 CDT
Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level Wed, 26 Oct 2022 15:32:23 CDT
Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023 Tue, 25 Oct 2022 10:17:53 CDT
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report Sun, 23 Oct 2022 12:45:37 CDT
Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers Fri, 21 Oct 2022 09:23:36 CDT
Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust Thu, 20 Oct 2022 13:44:44 CDT
Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains Wed, 19 Oct 2022 14:35:46 CDT
NCBA Weighs in on California's Proposition 12 Tue, 18 Oct 2022 11:32:24 CDT
2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level Mon, 17 Oct 2022 11:09:07 CDT
Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach Fri, 14 Oct 2022 08:14:05 CDT
Randy Blach Confident in Better Cattle Market Conditions Down the Road Thu, 13 Oct 2022 09:43:02 CDT
No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry Wed, 12 Oct 2022 16:11:15 CDT
Derrell Peel Explains Why International Trade of Beef is Valuable Tue, 11 Oct 2022 08:19:29 CDT
Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12 Mon, 10 Oct 2022 09:26:17 CDT
Amy Hagerman Highlights Federal Drought Help for Cattlemen and Lower Pricing for Forage/Water Testing from OSU Fri, 07 Oct 2022 09:43:15 CDT
NCBA Urges EPA to Press Pause on New WOTUS Rulemaking Thu, 06 Oct 2022 10:32:04 CDT
Kaitlynn Glover Reviews Supreme Court Oral Arguments on WOTUS Wed, 05 Oct 2022 09:45:32 CDT
NCBA Working to Keep GIPSA Rules in the Past Tue, 04 Oct 2022 09:15:31 CDT
NCBA's Colin Woodall Believes Beef is a Key Part of the Solution to Stamping out Hunger Mon, 03 Oct 2022 11:52:58 CDT
Federal Disaster Programs Available to Aid Producers in Forage Loss and Transportation Fri, 30 Sep 2022 08:53:09 CDT
Congressman Frank Lucas Works to Exclude Farmers and Ranchers from SEC Climate Disclosure Rulemaking Thu, 29 Sep 2022 13:17:29 CDT
USDA's Proposed Regulations Under the Packers and Stockyards Act Raises Concerns from NCBA Wed, 28 Sep 2022 09:25:15 CDT
Derrell Peel Believes Strong Incentives Coming for Cattle Producers Once We See Drought's End Tue, 27 Sep 2022 08:45:14 CDT
Derrell Peel Sees Beef Cow Culling to Set All-Time Record by the Fourth Quarter of 2022 Mon, 26 Sep 2022 10:03:22 CDT
Integrity Beef Helping Producers Develop Value Added Cattle Fri, 23 Sep 2022 11:18:28 CDT
